State the fundamental problems in Economics.

The fundamental economic problem is related to the issue of scarcity, there are three types of economic problem, and those are:

 

1. What to produce?:

                                 Everything in life is scarce. So, the basic economic problem is what we can produce using limited resources with proper utilization.

2. How to produce?:

                                Most goods can be produced in more than one ways using resources in different combinations. Which resources and technical process will be employed to produce these goods and services? So the problem after determining what to produce is by what methods are these commodities produce?

3. For whom to produce?:

                               How is the society to allocate the goods and services produced when the supply is never able to satisfy total demand? Who is to receive what share of the economic goods and services? So the questions are for whom shall the goods and services be produced?

Al last, we can say that, all fundamental problem is created because of limited resources and infinite demands. If we can make proper combination of those, fundamental problems can be solved.